More Companies May Qualify for SBA Loans With New Regulations

SBA changes the definition of what it means to be a small wholesaler

The U.S. Small Business Administration, the federal agency that provides loans and other assistance for small businesses, expanded its definition of what counts as a small business in a regulation published Monday.

About 4,000 more companies will have access to SBA loans totaling between $20 million and $25 million as a result of the change, according to estimates put together by SBA economists.

Under current rules SBA loans are set aside for businesses that fall below a certain employee count and can’t find reasonable credit elsewhere. But the maximum employee count varies by the industry. Car dealerships, for example, are capped at 200 employees, while an airline can employ as many as 1,500 and still be technically considered a small business.

The agency has been in the process for several years in changing the limits for various industries. The regulation posted Monday primarily affects various sorts of wholesalers, which are currently capped at 100 employees. The new rules means that some can be more than twice as large and still qualify for government assistance.Read More …

Many new small businesses may qualify for SBA loans with these new regulations. Contact your nearest PTAC to learn more about this and how it could affect your business.